While many people throughout the United States recognize and understand Chapter 7 and Chapter 13 bankruptcy, there are many other types of petitions that are provided by the federal government for other types of organizations, towns as a whole, and more. In review, consumer bankruptcy includes both Chapter 7 and Chapter 13 bankruptcy petitions. Chapter 7 is known as the "debt liquidation" form of bankruptcy – the bankruptcy filing that essentially allows a debtor to rid of his or her debt in a quick manner. Chapter 13 bankruptcy, the other most common form of consumer bankruptcy, is a much slower process that allows a consumer to reorganize his or her debt into affordable monthly payments – payments that usually last for three to five years.

The "other" types of bankruptcy that many people are generally unfamiliar with, however, include Chapters 9, 11, 12 and 15. According to the Bankruptcy Code, each chapter of bankruptcy was designed to help a certain entity through a difficult financial time. It can assist an organization, corporation, or even something as large as a community as a whole. Chapter 9 bankruptcy, which was first enacted during the Great Depression in 1934, is often referred to as "municipality bankruptcy." It offers the relief of debt for municipalities, including cities, towns, counties, villages, taxing districts, school districts, and more. Chapter 9 bankruptcy cases are some of the rarest bankruptcy cases, but some have been recorded in history, including the 1994 filing by Orange County, California and the potential future filing by Stockton, California in the upcoming months. On record, there have been fewer than 500 of these bankruptcy filings throughout the United States, according to the United States Courts.

In today's world, Chapter 11 bankruptcy becomes more and more well-known every day as more corporations and businesses are forced into bankruptcy due to the current economic situation. This chapter in the Bankruptcy Code is designated for those corporations or partnerships who are seeking the reorganization of their debts to keep the business alive and to pay off creditors over time. Chapter 11 in the Bankruptcy Code is often referred to as "reorganization bankruptcy." It differs from consumer bankruptcy in many ways, including the $1,000 filing fee that the debtor must pay at the time of filing the petition. A debtor is required by federal law to make plans as to how they will repay their debtors over time and submit this to the court. Once approved, the case can continue and the debtor can pursue debt relief while fighting to maintain the security his or her business.

The next form of bankruptcy that is rarely discussed includes Chapter 12 bankruptcy. This type of bankruptcy was created to adjust the debts of a family farmer or family fisherman with a "regular annual income" as the terms are defined by the Bankruptcy Code. It allows these family farmers and fishermen to propose a plan to pay back creditors and lenders in order to best protect their financial situation. According to federal law, the plan must be to pay back the debts for no shorter than three years and no longer than five years, and will require the debtor to use all of their disposable income to pay back these debts. This chapter of bankruptcy was created to help these individuals who could potentially qualify for Chapter 11 or 13, but eliminates some of the potentially negative effects it may have on their specific lifestyle; it is more streamlined and less expensive than Chapter 11.

Lastly, Chapter 15 under the bankruptcy code is known for "ancillary and other cross-border cases." Enacted in recent years, this chapter was added by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The main goal of this chapter is to provide an effective strategy to deal with insolvency cases of debtors that may involve more than one country. According to 11 U.S.C. § 1501, the main five objectives stated within this statute include: (1) to promote cooperation between our courts and other foreign courts for cross-border insolvency cases; (2) to establish a greater confidence for trade and investment; (3) to promote fairness and efficient administration of these cases; (4) to offer the maximization and protection of the potential value of the debtor's assets; and (5) to protect the financially troubled businesses, investments and employment.

If you are considering bankruptcy as the owner of a business, with financial affairs overseas, or as a consumer, it is very important for you to understand all of the options available to you and how it will directly affect your future. Deciding upon bankruptcy and which chapter may be right for you can be one of the most difficult decisions, especially without a bankruptcy attorney. Your local bankruptcy lawyer will be able to provide you with all of the information you need to understand how you can effectively rid of your unwanted debt. In addition to all of the different types of bankruptcy offered under federal law, there are many alternative strategies that you can approach with proper legal guidance. Your financial future should be one of your main priorities, and only your attorney will be able to give you all of the tools and resources necessary to successfully file your bankruptcy petition and get rid of your debt. To learn more about all of the types of bankruptcy available to you, speak to your local bankruptcy attorney right away.